Luxury Cars In India May Get Cheaper By Over Rs. 25 Lakh Soon – Here’s Why

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ICE vehicles imported from Europe priced above 15,000 euros will see duties reduced to 40 per cent from as high as 110 per cent in the first phase

The auto market is preparing for a decisive change in how it treats imported passenger vehicles with the proposed India–European Union free trade agreement set to redraw long standing boundaries. Expected to be formally announced tomorrow, the deal introduces sweeping changes to import duties that have historically kept European cars priced firmly out of reach for most buyers.

For decades, fully built European cars entering India have faced customs duties that could stretch as high as 110 per cent. Under the new framework, those levies are set to drop significantly. Internal combustion engine vehicles priced above 15,000 euros will see duties reduced to 40 per cent in the first phase – subject to an annual import ceiling of roughly two lakh units. Over time, tariffs are expected to fall further – eventually approaching 10 per cent.

Battery electric vehicles from the EU will not benefit immediately from the tariff cuts. Instead, they will remain excluded for about five years, a buffer to probably protect domestic EV programmes led by Tata Motors and Mahindra & Mahindra. Once that window closes, electric imports are expected to follow the same phased reduction route.

Also Read: BMW To Launch 10 New Luxury Cars In India This Year

Price impact is where the effects will be most visible. At present, a European car costing 45,000 euros to 50,000 euros can attract taxes that rival or exceed the vehicle’s base price by the time it reaches Indian showrooms. With duties capped at 40 per cent, the tax load falls dramatically. Even after accounting for GST and dealer margins, ex-showroom prices could drop by as much as 30 to 50 per cent.

Models from BMW, Mercedes-Benz, Audi, Volkswagen and Porsche stand to benefit the most which could effectively reshape the premium and luxury segments. Despite India’s passenger vehicle market crossing 4.4 million units annually, EU brands currently occupy a marginal share. High import barriers have limited risk-taking and slowed expansion.

Also Read: Volkswagen India Begins Local Assembly Of 7-Seater Tayron R-Line

The new tariff structure offers a controlled entry point allowing companies to gauge demand through capped imports before committing to deeper localisation or new factories. Negotiations between India and the EU have stretched over several years – repeatedly stalled by disagreements across sectors. The new deal comes amid global trade realignments and rising protectionism elsewhere.

Lower duties for imported vehicles do not erase the advantages of local assembly which continues to enjoy preferential tax treatment. The demand for premium cars will respond first while volume segments remain largely unaffected. If implemented as outlined, it could permanently alter how global brands approach one of the world’s fastest growing car markets.

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Toyota Urban Cruiser Ebella E1 Entry-Level Variant Detailed – Key Specs

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Toyota Urban Cruiser Ebella will be available in three variants namely E1, E2 and E3; base trim can be had only with a 49 kWh LFP battery pack

Toyota officially entered India’s electric vehicle space with the debut of the Urban Cruiser Ebella recently and it will go on sale soon in India. Based on the Maruti e Vitara, the Ebella will be will be offered in three trims namely E1, E2 and E3. The entry-level trim will be available exclusively with a 49 kWh LFP battery pack coupled to a single electric motor mounted at the front.

The setup delivers 142 bhp maximum power and 189 Nm of peak torque. Charging support on the E1 is limited to a 7 kW AC charger and we expect it to be priced around Rs. 17 lakh (ex-showroom). Despite being the base model, it is packed with features and technologies – benefitted by the local production at Suzuki’s manufacturing unit in Gujarat.

As for the design, the front end features LED daytime running lights flanking projector headlamps while the charging port is integrated into the front fender. The profile is defined by chunky body cladding, 18-inch alloy wheels and rear door handles tucked behind the rear windows. At the back, sporty LED tail lamps, a roof-mounted spoiler, faux skid plates, bumper reflectors and a shark-fin antenna complete the EV-specific styling.

Also Read: Toyota Urban Cruiser Ebella Variant-Wise Features Explained In Detail

Step inside and the cabin follows a familiar layout as the e Vitara with a dual-tone brown and black interior theme. The dashboard is dominated by a dual-screen setup consisting of a 10.25-inch digital instrument cluster and a 10.1-inch touchscreen infotainment system. A new two-spoke multifunction steering wheel, silver-finished AC vent surrounds and a clutter-free centre console are also present.

Elsewhere, the E1 variant offers fabric upholstery, a height-adjustable driver seat, tilt and telescopic steering adjustment, auto-dimming IRVM and keyless entry with push-button start. Rear-seat passengers benefit from sliding and reclining seats with a 40:20:40 split layout along with a centre armrest featuring integrated cupholders. Single-zone automatic climate control with a PM 2.5 air filter is also on offer.

Also Read: Toyota To Continue Offering Diesel Engines In Select Segments In India

Driving aids and EV-specific functions are well covered. Regenerative braking with selectable levels, one-pedal driving, multiple drive modes including Snow mode and an acoustic vehicle alert system are all part of the package. Braking duties are handled by ventilated disc brakes at both ends while the SUV rides on 225/55 R18 tyres mounted on alloy wheels.

Safety equipment is comprehensive for an entry-level variant. The Urban Cruiser Ebella E1 comes equipped with seven airbags, ABS with EBD, ESP, EPB with auto-hold, hill hold control, TPMS, a full-size spare wheel, an immobiliser and a pedestrian-friendly pedal release system.

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Skoda Kylaq CNG Launch Under Consideration

Skoda is evaluating a CNG Kylaq likely as a dealer-level retrofit

Skoda is evaluating the possibility of introducing a CNG-powered Kylaq in the future, as the compact SUV continues to be one of the brand’s stronger performers in terms of sales. The move would allow Skoda to target buyers seeking lower running costs, expanding the powertrain options beyond the current petrol-only lineup.

At present, the Kylaq is offered exclusively with a 1.0-litre turbo-petrol engine. According to information from people familiar with the matter, Skoda has been testing the same TSI motor with a CNG configuration. Instead of a factory-fitted layout, the brand is expected to follow the dealer-level retrofit route seen with other manufacturers, where the CNG kit is company-approved and covered under warranty.

If introduced, the Kylaq CNG would likely be paired only with a manual gearbox to keep pricing and system complexity in check. As with most CNG conversions, a reduction in power output compared to the current 114 BHP petrol figure is expected.

The Kylaq lineup has been expanding steadily over recent months. Skoda recently added Classic+ and Prestige+ variants, both available with manual and automatic transmissions. A new Sportline variant is also under development and is expected to reach showrooms around the third quarter of calendar year 2026.

Skoda also revised Kylaq pricing earlier this month, with increases of up to Rs. 15,000 depending on the variant, effective January 2026.

Source

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Avinya Set To Lead Tata Motors’ Next-Gen Electric Line-Up

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Avinya EVs to feature global level of design and engineering finesse and could pave way for the brand’s entry into key global EV markets

It has been eight years since Tata Motors entered India’s electric car market, and over this period, the company has firmly established itself as the segment’s leading player. As it looks for the next phase of growth, Tata Motors will not only expand its existing EV portfolio but also move into a higher-end segment with a new electric sub-brand called Avinya.

The current crop of EVs, marketed under Tata Passenger Electric Mobility (TPEM)’s Tata.ev brand, are all models derived from ICE vehicles. That will continue being the strategy for this portfolio moving forward.

In a higher segment, Tata Motors Passenger Vehicles (TMPV) will introduce a new generation of electric cars designed from the ground up and developed on an EV-only platform. Save for some potential hints in the design, such as the shape of the DRLs forming a “T,” these EVs will have no references to the Tata brand and carry an identity of their own – Avinya.

Also Read: Tata Motors Does Not Rule Out A Diesel Powertrain For New Punch

Originally, Tata Motors planned to develop the Avinya EVs on Land Rover’s upcoming EMA platform and had an agreement with JLR to manufacture Land Rover EVs based on the same platform alongside them in India. JLR later backed out of that deal, and without those additional volumes, building Avinya EVs on the EMA platform no longer seems to be feasible, which is why Tata Motors had to postpone the roll out of the upcoming brand’s first model.

Tata Motors has not revealed whether it is still sticking to EMA or will develop a new platform, but it is certain that the platform will have a skateboard design. Even if it sticks to EMA, it won’t be leveraging the platform to its full extent. Land Rover is planning an 800-volt electric architecture for EMA platform-based EVs, while Tata Motors had said in 2022 that it was looking at 300 to 400 volts for Avinya EVs.

Also Read: Tata Tigor Based Xpres Petrol & CNG Launched From Rs. 5.59 Lakh

The first Avinya EV will be the production version of the Avinya concept showcased in 2022. Reports suggest it will feature a sporty hatchback body with a low and wide stance and may incorporate some attributes of an SUV and an MPV. Tata Motors plans to make the first Avinya electric car at its Sanand plant and could price it well over 30 lakh rupees (ex-showroom) when it launches it at the end this year.

The second Avinya electric car will be the production version of the Avinya X concept, an SUV-coupe showcased at Auto Expo 2025. No details about this model are available at this point, but there’s no doubt that the Avinya X concept was far closer to production than the Avinya concept. Tata Motors may launch it a year after the first Avinya EV.

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Maruti Suzuki To Upgrade Brezza CNG With An Underbody CNG Tank

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Maruti Brezza CNG set to become more practical in intercity trips, offering a significantly higher boot space than the current model

Maruti Suzuki has started testing the Brezza with an underbody CNG tank. The company is developing a facelifted version of the Brezza and could roll out this update as part of that refresh. One of the biggest compromises in CNG cars is the large gas tank, which occupies a significant portion of the boot space, limiting their usability on long journeys. Tata Motors and Hyundai are attempting to overcome this limitation with a twin-cylinder layout, while Maruti Suzuki is opting for an underbody design.

Maruti Suzuki launched the Victoris with an underbody CNG tank in September last year, and now, it appears to be planning the same for the Brezza. The Brezza petrol offers 328 litres of boot space, and while Maruti Suzuki does not state the figure for the Brezza CNG, it’s certainly a significantly lower number.

The new underbody tank design should bring a major improvement in the boot space. The fuel capacity, efficiency, and range may also change. The current Brezza CNG features 55 litres of water-equivalent space in the tank and delivers a fuel economy of 25.51 km/kg. Under the hood, it has the K15C 1.5-litre naturally aspirated engine, married to a 5-speed manual transmission.

Also Read: Maruti Suzuki e Vitara India Launch Soon; Range, Specs, Price, Features, Safety

Pic Source: True Car Advice

The engine produces 74 kW (99 hp) and 137.1 Nm of torque running on petrol and 64.6 kW (87 hp) and 121.5 Nm of torque in CNG mode. It is likely to be carried over without any changes with the facelift. The facelifted Brezza may also come with new features like ventilated seats, a 10.25-inch digital instrument cluster, a 10-inch touchscreen infotainment system, and Level 2 advanced driver assistance systems.

The Maruti Brezza is one of the most popular CNG cars in India, and last year, it ranked fourth on the CNG car sales chart, with 70,928 units sold. The introduction of an underbody tank should make it even more popular and further solidify its position as the top pick in the compact CNG SUV segment.

Also Read: Huge Discounts On Maruti Suzuki Nexa Cars In Jan 2026; Up To Rs. 1.30 Lakh

Image Source: Nick Audience/Facebook

The new Maruti Brezza CNG will directly compete with the Tata Nexon CNG. Its prices may start at around 9.25 lakh rupees (ex-showroom) and go up to around 11.75 lakh rupees (ex-showroom).

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New Electric SUVs From 3 Big Players Launching Soon In India

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Toyota recently revealed its first EV for the Indian market in the form of the Urban Cruiser Ebella

The electric vehicle segment in India is growing at a rapid pace, fuelled by new product launches. The year 2026 will witness the market launch of Maruti Suzuki and Toyota’s first electric car, along with some highly anticipated models from Tata Motors. In this article, we will look at the upcoming EVs from Maruti, Toyota and Tata, which are scheduled for a launch this year.

1. Maruti Suzuki e Vitara

Maruti Suzuki has confirmed the launch of e Vitara in the first quarter of 2026, and it will likely go on sale in the coming weeks. The brand’s first electric car was officially unveiled in December last year. The EV will be offered in three trim levels, i.e. Delta, Zeta and Alpha.

It will feature two battery pack options, 49 kWh and 61 kWh, with an ARAI claimed range of up to 543 kilometres on a single charge. Based on the Heartect-e platform, the India-spec model only gets a front-wheel drive configuration, with power output rated at 172 bhp and 193 Nm of peak torque for the bigger 61 kWh battery pack option.

Also Read: Maruti Suzuki e Vitara India Launch Soon; Range, Specs, Price, Features, Safety

2. Toyota Urban Cruiser Ebella

Toyota Kirloskar Motors (TKM) recently took the wraps off the Urban Cruiser Ebella in the Indian market. The Japanese carmaker’s first electric car is basically the badge-engineered version of the Maruti Suzuki e Vitara, albeit with a tweaked and sharper exterior design. The interiors are quite identical, along with a familiar feature set.

The Urban Cruiser Ebella will be offered in three variants, i.e. E1, E2 and E3. Under the hood, the electric SUV packs the familiar 48.8 kWh and 61.1 kWh battery pack options, with a claimed range of up to 543 kilometres on a single charge.

3. Tata Sierra EV

Tata Motors is ready to launch the Sierra EV in the Indian market in Q1 2026. The exterior design of the electric SUV has already been revealed, and it differentiated itself from the ICE Sierra with a distinctive front fascia, featuring a blanked-off grille. Based on the ARGOS platform, the Sierra EV will get the option of an all-wheel drive system.

The powertrain details of the electric Sierra are under wraps, however, several reports indicate that it could feature a 55 kWh battery pack from the Curvv EV and a 65 kWh unit from Harrier EV. We expect the electric SUV to come with a claimed driving range of up to 500 kilometres on a single charge.

Also Read: Tata Motors Does Not Rule Out A Diesel Powertrain For New Punch

4. 2026 Tata Tiago EV Facelift

Tata Motors is working on a mid-life facelift of the Tiago EV, which was launched back in 2022. The test mule of the brand’s most affordable electric car was spied for the first time, and we expect it to be launched around mid-2026. The updated model will likely get minor tweaks to the exterior design, including refreshed bumpers, front grille and headlights.

Inside the cabin, the company could offer a fully digital instrument cluster and revised upholstery. Under the hood, the Tiago EV facelift will continue to pack the familiar 19.2 kWh (Medium Range) and 24 kWh (Long Range) battery options, with a claimed range of 223 kilometres and 293 kilometres, respectively.

5. Tata Avinya Sportback

The much-awaited Avinya nameplate is confirmed for a debut in the Indian market by the end of 2026. As per the reports, the first model in the Avinya range will feature a sleek sportback styling. It will be based on Jaguar Land Rover’s Electrified Modular Architecture (EMA), which is an advanced ground-up electric skateboard platform.

While the details are scarce at the moment, the Avinya Sportback will target the premium EV segment, rivalling the likes of Hyundai IONIQ 5 and Kia EV6. On the powertrain front, we expect a claimed range of over 600 kilometres on a single charge.

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Toyota Urban Cruiser Ebella Variant-Wise Features Explained In Detail

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Toyota Urban Cruiser Ebella is claimed to have an ARAI-certified driving range of up to 543 km on a single charge

Toyota is backing its electric ambitions in India with a strong ownership ecosystem even before announcing prices for its newest EV, the Urban Cruiser Ebella. The electric SUV will be supported by an eight-year battery warranty, Battery-as-a-Service programmes and an assured buyback plan while over 500 service outlets have already been upgraded for BEV readiness with more than 2,500 trained technicians nationwide.

Under the skin, the Urban Cruiser Ebella is built on the Heartect-e electric architecture, a dedicated EV platform jointly developed with Suzuki. The modular setup allows extensive sharing of batteries, electronics and electrical systems. Manufacturing for the Indian market will take place at Suzuki Motor Gujarat’s plant with the model also positioned for potential export opportunities.

From a safety and technology standpoint, the Ebella arrives as a well-equipped offering. It features seven airbags, a high-tensile body structure, a 360-degree camera system and Level 2 ADAS. The advanced driver assistance suite includes adaptive cruise control, autonomous emergency braking, lane keep assist, blind spot monitoring and rear cross-traffic alert.

The Urban Cruiser Ebella comes with a hammerhead-inspired front end with slim LED lighting while the profile is accentuated by 18-inch alloy wheels and dual-tone exterior colour schemes. An upright stance and clean body lines give it a more SUV-centric character than the Maruti Suzuki e Vitara it is related to.

Powertrain options are centred around two lithium-iron phosphate battery packs. A 49 kWh unit serves as the entry point while a larger 61 kWh battery sits at the top of the range. Both versions use a single front-mounted electric motor driving the front wheels with the larger battery producing 128 kW and 189 Nm of torque. Toyota claims an ARAI-certified driving range of up to 543 km for the larger battery version with support for both AC charging and CCS2 DC fast charging.

The cabin gets a dual-screen layout featuring a 10.25-inch digital instrument cluster and a 10.1-inch touchscreen infotainment system offering wireless Android Auto and Apple CarPlay. The feature list extends to ventilated front seats, a panoramic roof, ambient lighting with multiple colour options, sliding and reclining rear seats, wireless phone charging and a JBL premium audio system.

Bookings for the Urban Cruiser Ebella are already open and it has been confirmed to be available in three variants namely E1, E2 and E3. Below we have listed the variant-wise features:

Urban Cruiser Ebella E1 (Base Variant)

• 49 kWh LFP battery pack

• Front-mounted electric motor producing 142 bhp

• 7 kW AC charging support

• Regenerative braking with selectable modes

• Snow mode, drive mode selector and one-pedal driving

• Front and rear ventilated disc brakes

• ABS with EBD, ESP, EPB and Hill Hold Control

• TPMS and full-size spare wheel

• Seven airbags, immobiliser and pedestrian-friendly pedal release system

• AVAS (Acoustic Vehicle Alert System)

• Dual-screen setup: 10.25-inch digital cluster + 10.1-inch touchscreen

• Fabric upholstery with height-adjustable driver seat

• Sliding and reclining 40:20:40 split rear seats

• Rear centre armrest with cupholders

• Single-zone automatic climate control with PM 2.5 air filter

• Keyless entry with push-button start

• Auto-dimming IRVM and adjustable leather-wrapped steering

• 18-inch alloy wheels with 225/55 R18 tyres

• Automatic LED headlamps

• Rear wiper with washer

• Roof-end spoiler

• Electrically adjustable ORVMs

• Shark-fin antenna

Urban Cruiser Ebella E2 (Mid Variant)

• Larger 61 kWh battery pack

• More powerful 171.5 bhp electric motor

• Extended certified driving range (up to 543 km)

• Wireless smartphone charging pad

• Rear-view camera

• Luggage shelf

Urban Cruiser Ebella E3 (Top Variant)

• Level 2 ADAS including Adaptive Cruise Control

• Autonomous Emergency Braking

• Lane Keep Assist and Lane Departure Warning

• Blind Spot Monitoring

• Rear Cross-Traffic Alert

• Multi-collision braking

• Driver alert warnings

• Surround-view 360-degree camera

• Panoramic sunroof

• Powered and ventilated front seats

• Synthetic leather and fabric upholstery

• Adaptive high beam

• Automatic headlamp levelling

• JBL premium audio system

• Dedicated tweeters and subwoofer

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